Over the last few weeks, our patient approach to the market following December's volatility has continued to pay off.

In last week's report, we outlined how we're viewing this recent dip as yet another low-conviction dip-buy, and why we anticipate messy and whipsaw-prone price action before a tradable bottom is found.

There's little to update on since that report.

Spot flows have been neither bullish nor bearish, but neutral. We need to see demand come in from investors to form a tradable bottom. The market appears to be in oversold conditions, making this a logical place for this to happen.

Elevated leverage in the derivative markets has made futures the dominant force on price action. There are early signs of a short squeeze developing, but we need to see investor demand support it.

Apart from a few exceptions, we're sitting out most of the action in the alts for now.

The market has been different over the past two weeks compared to the past two months. We're seeing a resumption in trend in several sectors and today Fertilizers are in focus.

Let's take a look at the trade for this week!

We retired our "Five Bull Market Barometers" in 2020 to make room for a new weekly post that's focused on the three most important charts for the week ahead.

This is that post, so let's jump into this week's edition.

Some people think that Small-cap stocks underperformed last year.

But those are probably the ones left holding the bag in small-cap growth stocks.

You see, Small-cap Value stocks did great!

One for the record books, in fact.

This is our ASC Research Q1 2022 Playbook.

With the current market environment giving us many mixed messages, what better time to dive in and see what's happening underneath the surface?

• Stocks (International & U.S.)
• U.S. Sectors & Industries
• Market Breadth & Sentiment
• Commodities
• Currencies
• Intermarket Analysis
• Crypto Currencies
• New Trade Ideas
• Overall Strategy

These are the registration details for our live monthly conference call for Premium Members of All Star Charts India.

This month’s Conference Call will be held on Wednesday, January 19th at 7 PM IST. As always, if you cannot make the call live, the video and slides will be archived and published here along with every other live call since our launch.

Here are the details for Wednesday:

Have you noticed the sense of entitlement from investors left holding the bag in these growth stocks?

Why is that our problem?

The rest of the planet doesn't care about your obsession with U.S. growth stocks. It's a much bigger world out there.

Oh, you fell for that narrative about a female rock star portfolio manager?

Too bad.

Oh, you decided to buy stocks that historically do poorly in rising rate environments, during a rising rate environment?

Too bad.

These are the registration details for our live mid-month conference call for Premium Members of All Star Charts.

Our next Live Call will be held on Tuesday January 18th at 6PM ET. As always, if you cannot make the call live, the video and slides will be archived and published here along with every other live call since 2015.

Here are the details for Tuesday night:

It's Saturday Morning Chartoons time. 

This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.

You can find the whole list of trades here.

Below you'll find the full PDF of this week's charts:

From the desk of Steven Strazza @Sstrazza and Ian Culley @Ianculley

Commodities are making a fresh leg higher, and energy is leading the way.

Crude oil is back above our risk level around 76. And the energy-heavy CRB Index is at its highest level in more than seven years.

But it’s not just energy contracts that are working right now. We’re seeing strength across all areas of the commodity complex.

This broadening participation is evident in our equal-weight commodity index, which just hit new highs after consolidating for the past two quarters.

This chart shows the CRB Index and our equal-weight index side by side:

Both are printing new highs after some consolidation and corrective action last year. You can see the bullish continuation pattern very clearly in the equal-weight index.

Also, notice how both of these charts are sporting strong...

From the desk of Steve Strazza @Sstrazza

Our Hall of Famers list is composed of the 150 largest US-based stocks.

These stocks range from the mega-cap growth behemoths like Apple and Microsoft – with market caps in excess of $2T – to some of the new-age large-cap disruptors such as Moderna, Square, and Snap.

It has all the big names and more.

It doesn’t include ADRs or any stock not domiciled in the US. But don’t worry; we developed a separate universe for that which you can check out here.

The Hall of Famers is simple.

We take our list of 150 names and then apply our technical filters so the strongest stocks with the most momentum rise to the top.

Let’s dive right in and check out what these big boys are up to.

Here’s this week’s list:

And here’s how we arrived at it:

• Filter out any stocks that are below their May 10, 2021 high, which is when new...

From the desk of Willie Delwiche.

Two weeks into 2022 and EEM (Emerging Markets) has a 500 basis point YTD lead over SPY (S&P 500). Emerging markets are up more than 2% and the S&P 500 is down more than 2%. Short-term charts can make this look like a significant shift in leadership. While it may turn into that, at this point it looks like a premature conclusion. My guess is that we are in the early stages of a shift away from the US and toward global equity market leadership, including emerging markets. But two weeks of outperformance after a decade of relative weakness is not much of a signal. 

If we look at the history, all of the net gains in EEM over the past nearly two decades have come when the ratio between EEM and SPY has been above its 200-day average. The ratio is rising and the 200-day average is falling, so there is convergence. But there has not yet been a crossover. That’s the signal I want to see before getting too excited about the strength we are seeing from EEM. 

It’s certainly something to watch, but we want to watch with a bit of perspective.

...